Oyedele counters NLC, TUC, explains how tax reform bills will benefit workers

By Ayorinde Oluokun/Abuja

The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Dr Taiwo Oyedele, has countered organised labour on the effects of the tax reforms bills of President Bola Tinubu on the welfare of Nigerian workers.

The President, Trade Union Congress (TUC), Mr Festus Osifo, had declared opposition of the organised labour to the tax bills during the 2025 May Day celebration in Abuja on Thursday.

Osifo said the tax bills impose heavy burdens on workers’ meager allowances, describing them as “anti-workers”.

“They impose heavy burdens on our meager allowances —housing, transport, and even medical benefits, yet fail to promote a progressive taxation system that ensures the rich pay their fair share,” he said.

Osifo decried the plan to peg the minimum taxable income at N800,000 per annum, noting that the figure was only marginally below the newly agreed National Minimum Wage of N840,000 annually (N70,000 monthly).

“How can you tax someone earning, approximately the cost of just eight bags of 50kg rice in a year?

“We demand the immediate withdrawal of the anti-worker tax bill. “Nigeria needs a fair and inclusive tax system, one that exempts essential goods from VAT and provides real support to the informal sector,” he said.

But in obvious response to the claims, Oyedele said contrary to the argument of Osifo, some of the key provisions of the tax bills will improve the welfare of Nigerian workers.

Oyedele, on Friday in a statement, noted that provision to benefit workers included full exemption for workers earning up to N1.3m p.a. (over N100,000 monthly) represented not less than 35 per cent of all workers in the private and public sectors from Pay As You Earn (PAYE) tax.

He said the reform bills also contained reduced PAYE tax for workers earning up to N20m p.a. (about N1.7m monthly) benefiting additional 60 per cent of all workers and full PAYE tax exemption for members of the armed forces.

“The bills contain measures to reduce the cost of essential items such as zero Value Added Tax (VAT) on food, healthcare, and education representing about 60 per cent of all consumptions.

“There is also VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products representing over 20 per cent of all consumptions.
“These items constitute an average of 82 per cent of household consumption and nearly 100 per cent for low income earners to cushion the impact of rising cost of living for workers,” he said.

The tax expert added that the reform bills had incentives to facilitate higher compensation for workers.

He said it contained tax break for wage awards and transport subsidy to low-income earners, removal of restrictions and bureaucratic approvals for wage awards.

Oyedele said also in it was the introduction of a cap on the amount that may be taxed as benefit in kind granted to workers.

“There are also tax waivers to promote affordable housing, VAT exemption on rent and acquisition of real property and exemption of stamp duties on rent below one million naira,” he said.
Oyedele added that it contained tax incentives for employers to hire more workers, with friendly tax rules to attract international remote work opportunities for Nigerians.

“These changes deserve to be supported by everyone who seeks the well-being of Nigerian workers.

“We believe that the Nigeria Labour Congress and the Trade Union Congress will not intentionally work against the interest of their members,” he said.